Question
please show me how to prepare a federal tax return Tax return 1-4: Assuming Jay and JoAnn have an unincorporated business that they run as
please show me how to prepare a federal tax return
Tax return 1-4: Assuming Jay and JoAnn have an unincorporated business that they run as a sole proprietorship, prepare their joint Federal income tax return for 2021. Assume that they have no dependents, do have insurance coverage, do not have any other income or itemized deductions, and they made quarterly Federal income tax payments totaling $7,000. Dont forget to include a standard deduction. You should complete a Schedules 1,2, C, SEs, and Forms1040, 4562 8995
Jeff and JoAnn Jefferson are married and have a joint consulting business as a sole proprietorship. Below are the Income Statement and Balance Sheet for calendar 2021
| Income Statement |
|
| Consulting revenue | $256,000 |
| Salaries expense, employees | 100,000 |
| Payroll tax expense | 18,000 |
| Owners Salary(Officer compensation | 70,000 |
| Rent expense | 12,000 |
| Depreciation | 2,000 |
| Travel expense | 4,000 |
| Health Insurance (employees) | 6,000 |
| Health Insurance (owners) | 4,000 |
| Meals catered by local restaurant | 1,000 |
| Entertainment | 1,000 |
| Supplies | 5,000 |
| Net Book Income | $33,000 |
| Balance Sheet |
|
| Assets: |
|
| Cash | 26,000 |
| Computer | 10,000 |
| Computer A/D | -2,000 |
| Total Assets: | $34,000 |
|
|
|
| Common Stock | 1,000 |
| Retained Earnings | 33,000 |
| Total Liabilities and Equity | $34,000 |
|
|
|
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
8th edition
978-1259569197
